The Chaikin Power Gauge RatingTM for Staples, Inc. SPLS is bullish due to attractive financial metrics and bullish price/volume activity. The rating also reflects weak earnings performance. Price and volume activity for SPLS is bullish which is indicated by a positive Chaikin price trend. SPLS's financial metrics are very good due to a low long-term debt to equity ratio relative to its industry group.
Financial Metrics Rating – Bullish
SPLS's financial metrics are very good. The company does not hold much long-term debt relative to its industry group and may be undervalued. The rank is based on a low long-term debt to equity ratio relative to its industry group, low price to book value, high return on equity and relatively high cash flow.
Earnings Performance Rating – Bearish
SPLS's earnings performance has been weak. The company is priced relatively high compared to next year's projected EPS and has a history of weak earnings growth. The rank is based on poor EPS growth over the past 3-5 years, a relatively high projected P/E ratio and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Bullish
Price and volume activity for SPLS is bullish. SPLS has a rising price trend and is trading on higher volume than its 90 day average volume. The rank for SPLS is based on its relative weakness versus the market, a positive Chaikin price trend, a negative Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Neutral
Expert opinions about SPLS are neutral. Analyst’s opinions on SPLS have been more positive recently and short interest in SPLS is high. The rank for SPLS is based on a high short interest ratio, insiders purchasing stock and optimistic analyst opinions.